Caroona Coal Project

The Caroona Coal Project is a coal mine in the Hunter Valley in New South Wales that is being investigated by BHP Billiton.

While the company has discussed the project as only comprising a proposed coal mine, concerns have been raised that the company is also required to investigate the possibility of an associated power station as well. In a budget estimates committee, a NSW government representative was asked whether the exploration licence agreement signed between the NSW Government and BHP Billiton "for the Caroona coal field include a requirement for BHP to study the potential for a coal-fired power station in the Gunnedah region? Why was this included in the agreement?". In response the representative did not directly address the question, stating only that "I have no formal role in the issuing of exploration rights for coal mining in NSW."

In November 2006, George Souris, a member of the National Party in the New South Wales parliament, expressed concern about the proposed Caroona mine. "I also want the House to note my displeasure and that of the community about something that was revealed in a budget estimates committee hearing. The Minister was asked whether there was any prospect of an electricity generation plant, a power station, being built in the area. The Minister revealed that BHP Billiton had asked the Government for indicative approval to include a thermal power station, which would use some of the resource mined in that area, in utilisation studies in preparation for environmental assessment. The Minister said that it was an initiative of BHP, but that BHP had the approval of the Government to embark on these utilisation studies. I put on the parliamentary record that I oppose any form of mining on the Breeza Plains. Further, I oppose any form of electricity power station in the vicinity, partly because of my general opposition to a power plant in the area but specifically because coalmining activity would take place so that the resource could feed the power station. My displeasure arises primarily because the power plant proposal was never made public."

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